Public Provident Fund
It is widely considered that the Public Provident Fund is the safest option available for long term investments in India. Under the existing regulations, the accumulated funds are eligible to earn tax free compound interest. A bank or post office can start a Public provident fund account with a minimum deposit of ₹1,000. The acquisition is locked for 15 years, as agreed upon beforehand. But after the sixth year, you might withdraw a portion of the invested money. At the end of the 15 years, you can extend the deadline by an extra five years.
Scheme for National Pensions
National Pension Scheme is a market linked retirement plan with optional contributions. All Indian citizens between the ages of 18 and 65 are welcome to join the National Pension scheme Contrary to widespread belief, you are not allowed to withdraw the whole amount of your National Pension scheme corpus after retirement. This annuity will provide you with a consistent income stream for the duration of your retirement. Nevertheless, you can withdraw up to the last 60% of your retirement money tax free.
Monthly Income Scheme of the Post Office
Post Office Monthly Income scheme is a programme that is overseen by the India Post Office. It helps customers save money every month and is backed by the government. Any Indian person may register a Post Office Monthly Income scheme account, either alone or jointly, with a minimum opening deposit of ₹1500 and a 5 year maturity period. There are no tax benefits for the amount invested or interest income under this monthly savings plan.
Mutual Fund for Debt
Debt mutual funds are invested in fixed income securities such as corporate bonds, treasury bills, commercial paper, and other money market instruments by asset managed companies that aggregate contributions from various investors. Investing in debt funds aims to offer capital appreciation through getting interest payments from the underlying securities and making money off of changes in interest rates.
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